For those following our Facebook and Youtube channel, you would have heard that CryptoGrinders’ mission is to help a million people get debt free. However, some of you might be wondering: how does crypto factor into this? Does it even work?
The answer is YES. Crypto CAN get you debt free. However, this doesn’t mean you should just dump everything you have into bitcoin right this second. In this article, we give you some helpful tips on how to deal with debt.
To clear your debt, crypto alone is not enough. It takes commitment, discipline and hard work; but it is not impossible. Follow these simple tips, and you will be well on your way to being financially free.
4 Step Approach
Debt is a stressful thing to have hanging over your head. First of all, you need the right mindset to even begin taking the right actions. If you have been retrenched or laid off, it’s not your fault. If you lost money during a bear market, it’s not your fault. There is no shame: incurring debt is something that can happen to anyone.
What you DO about the debt is more important. Don’t stop looking for jobs or trying to find new streams of income. If you’re willing to do what other people won’t, you can accomplish what other people don’t.
Now that you’ve committed to clear your debt, you should begin with mitigating the problem. People are creatures of habit: its easy to fall into the routine of buying a morning coffee everyday, or indulging in an occasional splurge as a form of ‘shopping therapy’.
Its time to cut back on some expenses. Getting into a few simple habits can really help bring down costs. Prepare meals at home and bring them to work rather than going out to eat — just doing this, you could cut your food expenditure by more than HALF. Rather than going to the movies to relax, why not go to the library and borrow a book? Libraries even loan out films nowadays, if you prefer watching a show.
There are some things that you can’t cut back on: education expenses, healthcare, insurance and bills to name a few. These are necessities, and its important to carefully record down how much is being spent. If you know exactly what you’re spending on, you are that much more in control of your finances. Once the necessary expenses have been sorted out, you can begin allocating the remainder of your salary into paying off debts.
If you have more than one source of debt (i.e multiple credit cards and/or loans), don’t make the mistake of trying to clear them all simultaneously. Focus on the one with the highest interest rate, and work your way down the list. You’ll be able to clear them off quicker, rather than letting the interest accumulate.
Now that you’ve done all you can with your current income, its time to try and multiply your assets. There are several ways to go about doing so, but it all boils down to gaining new streams of revenue.
Whether you’re holding a full-time job or you’re still looking for employment, freelance jobs are a good way to increase your income (if your employment contract allows for it). There are websites like Upwork and Fiverr that allow you to work from the comfort of your home doing freelance jobs.
If you’re looking to get some cryptocurrency for your work, you can try sites such as Ethlance, and work in exchange for ETH.
It is true that you should not invest what you’re not prepared to lose. But here at CryptoGrinders, we believe that money makes more money: investments are key to helping you get out of your debt.
And we believe that cryptocurrency investments provide the most yield. Yes, just like any investment, there are risks involved. However, there are several compelling reasons why cryptocurrency investments are a great asset to invest in to clear debt as quickly as possible.
1. Low Barrier To Entry
Unlike traditional stocks or shares, you can purchase FRACTIONS of cryptocurrency. Even a small sum of $100 dollars can be used to invest. Instead of buying a full lot, you can just get 0.1 ETH, or 0.1 BTC, and begin building up your stack of digital assets.
2. Manageable Risk
Investing in cryptocurrency is not gambling. Just like with regular investments, do your due diligence before putting money into any project. What does it aim to accomplish? How is the team? Are they meeting their targets? What use-case does it have? There are many, many ways to analyse a project, and the more effort you put into this, the lower and lower your risk becomes.
3. Highest Yield
Unlike stocks, cryptocurrencies can fluctuate wildly in the span of hours. This can be seen as an ‘unstable’ investment, or it could be recognized as a lucrative opportunity. The same principles of technical analysis applies, the only differnce is that the time-frame is shorter than usual. All you need is a 5% — 10% increase in wealth per YEAR, and you’re already beating the rates given by banks.
Just applying a simple Dollar Cost Averaging strategy to invest into bitcoin would already be more profitable than keeping the money in a bank. Its effortless, low-risk, and can help you grow your finances more than 10x faster than putting it with financial institutions.
Cryptocurrency is still such a new space: people are starting to realise that the underlying technology has real-world application in the long run, and more and more money is flowing into the market. CryptoGrinders really hopes that each and every one of you is able to use this transfer of wealth to get yourself out of debt, and begin mastering your finances.
For more information on how to invest, do check out our Youtube, Facebook, Medium, and Telegram channels. Learn from like-minded individuals, educate yourself on how the space works, and learn how to leverage on cryptocurrency to turn your debt around.